Question

Marie had a good year. She received the following prizes and awards: - an iPad from The Famous Daytime Talk Show with a fair market value of $500 - lottery winnings of $1,000 received in cash - a plaque worth $25 plus $100 of Godiva chocolate in recognition for 100 days on the job without an accident - a $10,000 cash prize from American Idol How much of her prizes and awards should Marie report on her tax return?

a.None, they are all excluded from income
b.$11,000; only cash prizes and awards are included
c.$11,500; the award from her job is excluded
d.$11,700; the plaque may be excluded
e.$11,725; everything is included at the highest amount

Answer 1

c.$11,500; the award from her job is excluded

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.